State RegulationsGA specificDifficulty 3/5
A Georgia producer makes the following statements during sales calls. Which statement would NOT constitute misrepresentation under O.C.G.A. § 33-6-4(b)(2)?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
O.C.G.A. § 33-6-4(b)(2) reaches false, deceptive, or misleading statements about the terms, benefits, or dividends of a policy. An accurate quotation of the policy's own guaranteed values is neither false nor misleading, so it falls outside the prohibition even though the other statements in the same sales calls would violate the section.
Why the other options are wrong
- B) Calling term coverage paid-up insurance that never lapses misstates the policy's terms and is misrepresentation under O.C.G.A. § 33-6-4(b)(2).
- C) Guaranteeing non-guaranteed dividends misrepresents the policy's dividend practice under O.C.G.A. § 33-6-4(b)(2).
- D) Claiming nonexistent benefits is the core misrepresentation targeted by O.C.G.A. § 33-6-4(b)(2).
Memory hook
Quote the policy truthfully and you are safe; dress it up and the misrepresentation rule bites.